Mr Cooper Group Inc (COOP)

[boarddork]

Mr Cooper Group...is going to need a new trick pony to ride going forward in this new economy. The party is over. Mortgage originations are gonna be unreliable income as homeowners don't want to sell/move/give up 3 times the house for half the money at 3% interest, versus a new smaller un-updated home now at a 7% + interest rate. The few people moving now are largely those without a choice. The majority of homeowners are gonna stay put, and the real estate inventory market is gonna continue to be constipated. Stuck

COOP's always got its efficient servicing platform to continue generating some income, but as far as buying new servicing portfolio rights?...I think its gonna be an extremely tough row to hoe. As mortgage originations dry up, there's gonna be a lot of competition for purchasing new servicing rights for easy income.

What's COOP's next move before the end of the year, and income drops from sputtering mortgage originations? For one, I think I'd be tapping those legacy WMI capital trusts for future passive income to make up the gap. WE and they could all use it going forward. It's been over a $50 average PPS for many days.... I guess we'll find out in the next few months to come.

GLTE, it isn't easy out there